By acting together, oligopolistic firms can hold down industry output, charge a higher price, and divide the profit among themselves. This is called:
a. a contract.
b. associating.
c. competition.
d. collusion.
d. collusion.
By acting together, oligopolistic firms can hold down industry output, charge a higher price, and divide the profit among themselves. When firms act together in this way to reduce output and keep prices high, it is called collusion.
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Other things being equal, which of the following would increase the market demand for labor?
A. A decrease in the cost-effectiveness of labor relative to other inputs. B. A decrease in the market demand for the firm's output. C. A fall in the wage rate. D. An increase in the marginal productivity of labor.
Which is an important consequence of the public debt of the United States?
A. It will threaten to bankrupt the federal government. B. It leads to fewer incentives to bear risk and innovate. C. It decreases the inequality in the distribution of income in the United States. D. It transfers a portion of output from foreign nations to the United States.
Refer to the table below. If an excise tax of $3 per unit is imposed on this product, the new equilibrium price with tax will be:
The following table gives data for the market for a product.
A. $6
B. $5
C. $4
D. $2
Which aggregate expenditure schedule AE in the diagram for a private closed economy implies the largest MPC, assuming investment is the same at each level of income?
A. AE 4 .
B. AE 3 .
C. AE 2 .
D. AE 1 .